Wells Fargo & Company Forecasts Strong Price Appreciation for Stagwell (NASDAQ:STGW) Stock

Key Points

• Wells Fargo raised Stagwell’s price target from $8 to $10 and maintained an “Overweight” rating, implying 21.51% upside from the prior close. Needham also set a $10 target and “Buy” rating, while the analyst consensus remains “Moderate Buy” with an $8.50 average target.
• Stagwell’s latest quarterly results beat expectations, with adjusted EPS of $0.25 versus $0.17 expected and revenue up 11.2% year over year to $786.31 million. The company raised fiscal 2026 adjusted EPS guidance to $1.03–$1.17, though full-year revenue guidance reportedly trails analyst expectations.
• Risks remain despite the bullish outlook: GAAP profitability was weak, with a net margin of just 0.64%, while the company carries a debt-to-equity ratio of 1.99. Director Bradley J. Gross also sold nearly all of his shares, although CEO Mark Penn made a smaller purchase.

Stagwell (NASDAQ:STGW - Get Free Report) had its price target upped by equities researchers at Wells Fargo & Company from $8.00 to $10.00 in a report issued on Friday,Benzinga reports. The firm presently has an "overweight" rating on the stock. Wells Fargo & Company's price target suggests a potential upside of 21.51% from the stock's previous close.

Other equities research analysts also recently issued research reports about the company. Zacks Research upgraded Stagwell from a "strong sell" rating to a "hold" rating in a research report on Friday, June 5th. Needham & Company LLC upped their price objective on Stagwell from $8.00 to $10.00 and gave the stock a "buy" rating in a report on Thursday. Weiss Ratings lowered Stagwell from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, May 4th. Wall Street Zen downgraded Stagwell from a "strong-buy" rating to a "buy" rating in a research report on Saturday, May 2nd. Finally, Rosenblatt Securities reaffirmed a "buy" rating and issued a $9.00 target price on shares of Stagwell in a research note on Tuesday, May 5th. Five equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $8.50.

Stagwell Price Performance

Shares of STGW stock traded down $0.26 during trading on Friday, hitting $8.23. The company had a trading volume of 370,298 shares, compared to its average volume of 1,657,641. The stock's 50-day moving average is $7.15 and its two-hundred day moving average is $6.40. The stock has a market capitalization of $2.04 billion, a price-to-earnings ratio of 117.79 and a beta of 1.26. The company has a quick ratio of 0.83, a current ratio of 0.83 and a debt-to-equity ratio of 1.99. Stagwell has a 52 week low of $4.28 and a 52 week high of $8.50.

Stagwell (NASDAQ:STGW - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $0.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.17 by $0.08. Stagwell had a net margin of 0.64% and a return on equity of 24.12%. The business had revenue of $786.31 million during the quarter, compared to analyst estimates of $754.56 million. During the same period in the previous year, the business posted $0.17 earnings per share. Stagwell's revenue for the quarter was up 11.2% on a year-over-year basis. Stagwell has set its FY 2026 guidance at 1.030-1.170 EPS. As a group, analysts predict that Stagwell will post 0.86 EPS for the current fiscal year.

Insider Activity at Stagwell

In related news, Director Bradley J. Gross sold 2,163,790 shares of the firm's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $6.04, for a total value of $13,069,291.60. Following the sale, the director directly owned 8,789 shares of the company's stock, valued at $53,085.56. This trade represents a 99.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Mark Jeffery Penn purchased 20,000 shares of Stagwell stock in a transaction that occurred on Wednesday, May 13th. The shares were acquired at an average price of $5.88 per share, for a total transaction of $117,600.00. Following the acquisition, the chief executive officer owned 23,034,990 shares in the company, valued at $135,445,741.20. This trade represents a 0.09% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 11.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Stagwell

Several hedge funds and other institutional investors have recently modified their holdings of STGW. Kestra Advisory Services LLC purchased a new stake in Stagwell in the fourth quarter worth about $26,000. Clearstead Advisors LLC grew its holdings in shares of Stagwell by 186.2% during the 4th quarter. Clearstead Advisors LLC now owns 7,020 shares of the company's stock worth $34,000 after acquiring an additional 4,567 shares during the period. Tower Research Capital LLC TRC grew its holdings in shares of Stagwell by 311.8% during the 2nd quarter. Tower Research Capital LLC TRC now owns 10,790 shares of the company's stock worth $49,000 after acquiring an additional 8,170 shares during the period. Inceptionr LLC bought a new position in shares of Stagwell in the 4th quarter worth approximately $50,000. Finally, New York State Teachers Retirement System purchased a new position in shares of Stagwell in the 4th quarter valued at approximately $52,000. Hedge funds and other institutional investors own 35.61% of the company's stock.

Trending Headlines about Stagwell

Here are the key news stories impacting Stagwell this week:

• Positive Sentiment: Second-quarter results exceeded expectations. Stagwell reported $0.25 in adjusted EPS, versus the $0.17 consensus estimate and $0.17 a year earlier. Revenue rose 11% year over year to $786 million, ahead of the $754.6 million estimate. Stagwell Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Underlying growth and profitability strengthened. Adjusted EBITDA increased 15% to $109 million, adjusted EPS grew 39% to $0.25, and digital-transformation net revenue grew 18% organically. Record quarterly net new business of $171 million and $540 million over the last 12 months also support future revenue growth. Stagwell Reports Second-Quarter Results
• Positive Sentiment: Full-year adjusted EPS guidance was raised. Stagwell now expects fiscal 2026 adjusted EPS of $1.03 to $1.17, above the prior consensus estimate of $1.01. Stagwell 2026 Guidance Update
• Positive Sentiment: Needham turned more bullish. The firm raised its price target from $8 to $10 and maintained a “Buy” rating, implying additional upside based on the reported reference price. Benzinga analyst update
• Neutral Sentiment: GAAP profitability remains weak. Stagwell posted a $0.03 GAAP loss per share and an $8 million net loss, despite the strong adjusted results. Its net margin was only 0.64%, which may limit enthusiasm among investors focused on bottom-line earnings. Stagwell Q2 Earnings Snapshot
• Negative Sentiment: Full-year revenue guidance trails expectations. Management forecasts 2026 revenue of approximately $3.0 billion to $3.1 billion, below the roughly $3.2 billion analyst consensus, creating a potential offset to the earnings beat and higher EPS outlook. Stagwell 2026 Q2 Earnings Presentation

About Stagwell

Stagwell Inc is a modern marketing and communications network that partners with global organizations to drive brand growth through data-driven insights and creative solutions. The company operates a diversified portfolio of specialized agencies and technology platforms, offering services that span digital marketing, advertising, public relations, consumer and market research, social media strategy, and commerce consulting. By integrating research, creative, media, and technology under a unified network, Stagwell aims to deliver end-to-end marketing solutions tailored to the evolving needs of clients in sectors such as technology, healthcare, consumer goods, and financial services.

Founded in 2015 by long-time political strategist and pollster Mark Penn, Stagwell has expanded organically and through strategic acquisitions to build capabilities across the marketing value chain.

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